We bring to you the sixth edition of Energy Recap, an editorial newsletter by TA to track and report on major policy developments in India’s energy sector. Here are some of the key energy highlights from the week (5 July to 11 July).
Gujarat announces new EV Policy
Gujarat government has announced a new electric vehicle (EV) policy which will provide an incentive of up to Rs. 10,000 per KWh for electric vehicles. Under the scheme, the government is targeting a total of 2,00,000 EVs which will include 1,10,000 e-two-wheelers; 70,000 e-three-wheelers and 20,000 e-four-wheelers.
According to policy, the maximum ex-factory price to avail incentive for electric two-wheelers will be up to Rs 1.5 lakh, up to Rs 5 lakh for electric three-wheelers and Rs 15 lakh for electric four-wheelers (personal and commercial), respectively.
Moreover, the government has announced that commercial public EV charging stations for two, three and four e-wheelers will be eligible for 25 percent capital subsidy on equipment/machinery (up to Rs 10 lakh per station). These benefits are in addition to the revision in the FAME II policy announced earlier.
Source: Autocar India
Power demand touches an all-time high
On July 07, 2021, India’s power demand touched an all-time high and crossed 200 GW mark. As per the ministry’s data, peak power demand had touched an all-time high of 192.16 GW on 5th July 2021. The figure had surpassed the earlier peak power demand of 191.51 GW recorded on 30th June. According to power experts, the reason behind this is high temperature due to delayed monsoon and ease in coronavirus restrictions.
Last month, peak power demand met or the highest supply in a day witnessed a growth of over 16 per cent at 191.51 GW (recorded on June 30) compared to 164.98 GW recorded in early June 2020.
Source: ET Energy World
Hardip Singh Puri become new Minister for Petroleum and Natural Gas
On July 08, 2021, Hardip Singh Puri succeeded his cabinet colleague Dharmendra Pradhan and took charge of the Ministry of Petroleum and Natural Gas. He has relinquished the portfolio of Civil Aviation but continues to hold the Housing and Urban Affairs Ministry.
After taking charge, he said to focus on increasing domestic production of crude oil and natural gas and help the country become Atmanirbhar, as envisioned by PM Modi. He has said to promote the use of clean energy and ensure its adequate availability in the light of creating a gas-based economy in the country. The minister has also urged global oil exporters, including OPEC, to gradually do away with the production cuts and help lower the surging oil prices. In many cities, the price of petrol has breached the Rs. 100 mark, making a big hole in the pocket of the common man.
Source: Economic Times (Energy World)
Fuel prices hit record high, prices hiked for second consecutive day
The petrol prices touched a record high across the country on 8th July 2021. The petrol price rose 35 paise while diesel rose by 9 paise making retail price in Delhi for Petrol Rs 100.56 a litre and diesel at Rs 89.62, respectively.
In July, petrol prices hiked five times while diesel prices were hiked three times. In June, both petrol and diesel prices were hiked 16 times which followed the 16 hikes in May. Prices have been on the rise since May 4 after oil marketing companies (OMCs) resumed their price revisions ending an 18-day gap that coincided with the assembly elections in five key states. During this period, petrol price has increased by Rs 10.16 per litre and diesel has climbed by Rs 8.89 in the national capital.
Source: The Indian Express
India’s energy consumption declines by 5.9%, says BP Statistical Review
According to a report by BP Statistical Review of World Energy, India’s energy consumption declined by 5.9% in 2020 to 31.98 exajoules. Moreover, it also said that global energy consumption declined by 4.5% to 556.63 exajoules in 2020. India also registered the second-highest fall in coal consumption, which declined by 1.1 exajoules, and the third-highest fall in oil demand, which declined by 480,000 barrels per day. By country, the US, India and Russia contributed the largest declines in energy consumption. China posted the largest increase (2.1%) where energy demand grew last year.
Moreover, the growth rate of power generation from renewable energy sources in India dipped to 8.3% in 2020 as against the average growth rate of 17.4% between 2009 and 2019.
Source: The Hindu Business Line
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